Simply put a rather substantial parting gift to the Companies Act, 1956, on the occasion of its retirement. An OPC is a hybrid structure, wherein it combines most of the benefits of a sole proprietorship and a company form of business. It has only one member who will act in the capacity of a director as well as a shareholder. It does away with the hassles of finding the right kind of co-partner for starting a business as legal entity. The best part is, legal and financial liability is limited to the Company and not the member. Hence, you do not need to share your piece of cake in the name of partnership.
Section 2(62) defines OPC as a Company which has only one person as a member. The Company Incorporation Rules provide that only a natural person who is a resident of India and also a citizen of India can form a one person company. It means that other legal entities like companies or societies, other corporate entities, Non-resident Indians or Foreign citizens cannot form a one person company. Further the rules also specify that on one person can be a shareholder only in single One Person Company at any given time. It simply means an individual cannot have two different one person companies in his name.